Selectivity: The ECJ holds that the selective effect of a measure must be appraised within a regional reference framework if this measure has been adopted by a regional or local authority in the exercise of sufficiently autonomous powers (Portugese Republic v Commission)

*This article is an automatic translation of the original article, provided here for your convenience. Read the original article. – ECJ, 6 September 2006, Portugal v. Commission, Case C-88/03 That judgment is the first in which the Court answers the question whether a measure which provides for a more favourable rate of tax for a certain geographical area of a Member State than that in force at national level must be classified as a selective measure within the meaning of Article 87(1) EC. On 20 January 1999 the legislative body of the Azores Region adopted a decree which provides for the adaptation of the Portuguese national tax system to the specificities of the Autonomous Region of the Azores (reductions in income tax rates). The Portuguese authorities notified this scheme to the